Rp4.7 trillion chip corruption case in Indonesia's neighbour, Anti-Corruption Commission steps in

Jakarta, CNBC Indonesia - The Malaysian Anti-Corruption Commission is investigating alleged corruption and fraud in a technology deal worth 1.1 billion ringgit, or around Rp4.7 trillion, between the Malaysian government and UK chip-design company Arm Holdings.

MACC chief Azam Baki said investigators are examining potential abuses of power, fraud, and governance issues in the agreement. “We will investigate this matter fairly and professionally,” Azam said, as quoted by Reuters on Thursday (5 March 2026).

He disclosed that 12 people have been summoned for questioning, including a former minister and several officials from the Ministry of Economy and the government’s investment agencies.

In addition to the Arm agreement, the anti-corruption body is also examining plans for the proposed acquisition of construction group IJM Corporation Berhad by local conglomerate Sunway Group. The government had previously announced the Arm agreement in March 2025.

Under the agreement, the government will pay US$250 million over 10 years to acquire Arm’s chip designs, which local semiconductor manufacturers could later use.

Arm is a British semiconductor design company. Indonesia also recently signed a deal with Arm through the Danantara Investment Management Agency (BPI Danantara). In this collaboration, the government will develop six chip designs based on intellectual property (IP) owned by Indonesia. The focus spans several strategic sectors, including automotive technology, the Internet of Things (IoT), data centres, home appliances, and more futuristic areas such as autonomous vehicles and quantum computing.